Walmart Inc (WMT)
Profitability ratios
Return on sales
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 24.38% | 24.14% | 25.10% | 24.83% | 24.69% |
| Operating profit margin | 4.17% | 3.34% | 4.53% | 4.03% | 3.93% |
| Pretax margin | 3.25% | 2.85% | 3.22% | 3.64% | 3.78% |
| Net profit margin | 2.39% | 1.91% | 2.39% | 2.42% | 2.84% |
Walmart Inc's profitability ratios reflect its ability to generate income relative to its revenue. The gross profit margin has been relatively stable over the past five years, hovering around 24-25%, indicating consistent control over production and distribution costs.
The operating profit margin has shown some fluctuations but has improved in recent years, reaching 4.17% in 2024. This suggests that Walmart has been able to effectively manage its operating expenses and streamline its operations to enhance profitability.
The pretax margin has also varied over the years, with an upward trend toward 2024, implying efficient management of taxes and other non-operating expenses. This indicates that Walmart has been successful in optimizing its income before accounting for taxes.
Lastly, the net profit margin, which represents the bottom line profitability after all expenses have been deducted, has seen fluctuations but generally remained within a range of 1.91% to 2.84%. This indicates that Walmart has been able to preserve profitability despite changes in operating and non-operating factors.
Overall, Walmart Inc's profitability ratios demonstrate the company's ability to maintain a reasonable level of profitability over the years through effective cost management and operational efficiency.
Return on investment
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 10.70% | 8.40% | 10.59% | 8.93% | 8.70% |
| Return on assets (ROA) | 6.15% | 4.80% | 5.58% | 5.35% | 6.29% |
| Return on total capital | 22.51% | 18.35% | 21.96% | 18.46% | 17.37% |
| Return on equity (ROE) | 18.50% | 15.23% | 16.42% | 16.69% | 19.93% |
Walmart Inc's profitability ratios show a generally positive trend over the past five years.
1. Operating return on assets (Operating ROA) has increased steadily from 8.70% in 2020 to 10.70% in 2024, indicating improved efficiency in generating operating profits from its asset base.
2. Return on assets (ROA) also shows a positive trend, with an increase from 5.35% in 2021 to 6.15% in 2024, indicating the company's increasing ability to generate profits relative to its total assets.
3. Return on total capital has shown consistent improvement, rising from 17.37% in 2020 to 22.51% in 2024, reflecting efficient utilization of both equity and debt in generating returns for the company.
4. Return on equity (ROE) has varied slightly but has generally remained within a healthy range, with a high of 19.93% in 2020 and a low of 15.23% in 2023. This ratio indicates the company's ability to generate profits for its shareholders from the equity invested in the business.
Overall, the profitability ratios suggest that Walmart Inc has been effectively managing its assets and capital to generate increasing returns for its shareholders over the past five years.